Remember Gary Potts, the former Treasury mandarin who was commissioned to review the situation regarding unauthorised foreign insurers (UFIs)? His report into the problems surrounding UFIs and discretionary mutual funds was due to be released at the end of January.

Despite a welter of submissions, no one seems to know what has happened to Mr Potts’ report.

HIH Royal Commissioner Justice Neville Owen recommended last year the Government should extend prudential regulation to all discretionary insurance-like products. Federal Treasurer Peter Costello then commissioned Mr Potts, a former executive director of the Treasury’s markets group, to conduct the review.

The Insurance Council of Australia told Sunrise Exchange News it had no news on the Potts review and Treasury declined to return calls. 

The industry is pushing for the Government to extend its prudential reach to all insurance-like products available to Australian consumers. In its submission to the review, IAG said that until UFIs are subjected to Australian regulation, consumers will be “inappropriately exposed” to a number of risks.

“It is unreasonable to expect retail consumers to conduct a detailed review of the financial security of their insurance contract or its provider,” IAG CEO Michael Hawker said. “They should be entitled to assume a base level of security from all providers of retail insurance operating in the local market.”